Several US airlines are taking legal action against the Department of Transportation (DOT) following its publishing of a rule in April requiring airlines to disclose all fees upfront.
The DOT’s rules make it mandatory for airlines and agents to disclose all the costs and policies for checked bags and reservation changes and ensure refunds for delays and cancellations. The DOT has said the rules support consumer rights by helping airline passengers avoid hidden and unexpected fees.
As a result, several airlines, including Delta Air Lines, United Airlines, American Airlines, Hawaiian Airlines, JetBlue, and Alaska Airlines, joined aviation advocacy body Airlines for America (A4A) in filing a lawsuit against the DOT, reports simpleflying.com.
“US airlines are committed to providing the highest quality of service, which includes clarity regarding prices, fees and ticket terms.
“A4A members offer a range of options – including fully refundable fares – to increase accessibility to air travel and to help customers make ticket selections that best fit their needs. Consumers are given the choice of refundable ticket options with terms and conditions that best fit their needs at first search results,” A4A said in a statement on its website in late April.
According to reuters.com, the lawsuit, submitted on May 10, says the rule is attempting to regulate private business operations beyond its authority and an abuse of discretion contrary to the law.
The DOT believes the rule will foster a more competitive market and allow passengers to have all the information needed to better understand the actual cost of air travel.
The Department believes consumers are overpaying US$543 million (R10 billion) in junk fees annually. Skift.com defines junk fees in the travel industry as charges imposed by travel service providers that are seen as hidden, unnecessary, or excessive.
This includes higher checked baggage fees, which vary depending on whether the passenger pays in advance or on the day of the flight, and fees for changing reservation details.
DOT also said the rule would end bait-and-switch tactics and prohibit airlines from advertising promotional discounts off a “low base fare that does not include all mandatory carrier-imposed fees”.
Simpleflying.com summarises the main points of the new rule as follows:
- Disclose critical extra fees upfront;
- Explain critical extra fees policies before purchase;
- Share critical extra fee prices and policies with relevant companies;
- Inform consumers that seats are guaranteed;
- Provide both standard and passenger-specific fee information;
- End discount bait-and-switch tactics;
Airlines were given six months to share this information with travel agents, and agents were given two years to begin disclosing this information.
